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DECISION No.28-TTg OF JANUARY 13, 1997 OF THE PRIME MINISTER ON THE 1997 COMMODITIES AND IMPORT-EXPORT MANAGEMENT POLICY

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to Decree No.33-CP of April 19, 1994 of the Government on the State management over import and export activities;

At the proposals of the Minister of Trade and the Minister of Planning and Investment,

DECIDES:

Article 1.- To approve a list of imports and exports in 1997 in the appendice attached to this Decision:

- A list of commodities banned from import and export (Appendix 1).

- A list of commodities regulated by quotas (Appendix 2).

- A list of commodities for import or export under specialized management regulations (Appendix 3).

- A list of commodities related to the major balances of the national economy (Appendix 4).

Article 2.- To approve the quotas and the mechanism for managing the following commodities in the 1997 list of commodities regulated by quotas:

1. Textiles and garments for export under the Agreement signed between Vietnam and the EU, Canada, Norway and Turkey: The quotas shall be allocated in accordance with Inter-ministerial Circular No.13-TTLB/TM-CN of September 19, 1996 of the Ministry of Trade and the Ministry of Industry.

2. On the export of rice.

The Ministry of Trade shall apply the following managerial principles to ensure the export of 2.5 million tons of rice:

- The rice export quotas shall be allocated in two phases: approximately 2.0 million tons in the first phase from the beginning of the year to September 1997; the remainder shall, depending on the crops, be later allocated by the Ministry of Trade after consulting the Ministry of Agriculture and Rural Development,

- With regard to the export mechanism and organization, for the immediate future the regulations set for 1996 shall still apply, the Prime Minister shall issue a separate decision on any change thereof.

Article 3.- Management of the import of key goods items related to the major balances of the national economy:

1. For petrol and oil (except lubricants)

- The Ministry of Trade shall manage and ensure the import of around 6.5 million tons of petrol and oil products (excluding the quantity temporarily imported for re-export), allocate from the beginning of the year all the import quotas for petrol and oil to the enterprises specialized in petrol and oil trading, 60 per cent of which shall be imported by the Petrol and Oil Corporation.

- In cases where the import quotas need to be adjusted, the Ministry of Planning and Investment shall submit them to the Prime Minister for consideration and decision.

- The Pricing Commission of the Government shall assume the main responsibility and together with the concerned Ministries and branches shall closely monitor the petrol and oil market and submit to the Prime Minister for consideration and adjustment, when necessary, the ceiling retail petrol and oil prices so as to stabilize petrol and oil prices on the market.

2. For fertilizers.

The Ministry of Trade shall have to manage the import of fertilizers on the following principles:

- Ensuring the import of approximately 1.5 million tons of urea; other chemical fertilizers shall be imported according to the quantity determined by the Ministry of Agriculture and Rural Development.

- After consulting the Ministry of Industry on the quantities of locally-made fertilizers, the Ministry of Agriculture and Rural Development shall have to inform the Ministry of Trade of the quantities of various fertilizers to be imported for each crop and each region as the basis for the Ministry of Trade to manage the import of fertilizers.

- The Agricultural Supplies Corporation and the Cereal Import-Export Company under the Ministry of Agriculture and Rural Development shall have to import about 50 per cent of the required quantity of urea and other fertilizers, including the reserve quantities decided by the Prime Minister; these two enterprises must ensure sufficient direct import of the assigned quantities and must not re-allocate their quotas to other enterprises.

Should any problem arise in the fulfillment of the allocated quotas, it must be reported by the two enterprises to the Ministry of Agriculture and Rural Development for solution.

- With regard to the demand for urea and other fertilizers, the Ministry of Trade shall, basing itself on the financial and organizational capability of importing large quantities of the enterprises which directly imported fertilizers in 1996, assign concrete import quotas to these enterprises while ensuring a harmonious coordination in each region. The Ministry of Trade shall announce the list of these enterprises at the beginning of the year.

- The State Bank of Vietnam shall direct the Commercial Banks in securing when necessary the payment in installments for the fertilizers imported by the aforesaid enterprises and observing current regulations on borrowing and repaying foreign debts.

Article 4.- With regard to such materials and commodities as cement, clinker, sugar, iron, steel, cast iron, construction glass, paper of various types... most of which are currently manufactured in the country, the Ministry of Planning and Investment shall assume the main responsibility for determining the need of additional imports on the basis of the domestic production plan after consulting the production managing Ministries and branches and the Ministry of Trade, on which basis the Ministry of Trade shall, together with the Ministry of Planning and Investment and the production managing Ministries, work out the principles for the management of such imports

If there is a fluctuation of the market prices, the Pricing Commission of the Government shall assume the main responsibility, after consulting the concerned Ministries and branches, to submit to the Prime Minister for consideration and adoption measures to stabilize the market such as tax adjustments, financial and credit measures and circulation of the reserve supplies.

Article 5.- On the import of consumer goods:

1. Proceeding from the need of protecting domestic production, efficiently using foreign currencies and restricting the import of non-essential and luxury commodities which do not suit the current average living standard or commodities which have been sufficiently produced at home, the Ministry of Planning and Investment is assigned together with the production managing Ministries and the Ministry of Trade to determine a list of commodities restricted or discouraged from import; basing itself on this basis, the Ministry of Finance shall adjust in time the import duties at appropriate rates and restrict to the minimum the granting of import permits.

2. The State Bank of Vietnam, the General Department of Customs, the Ministry of Trade and the Ministry of Finance should focus on the following tasks:

a/ To restrict to the minimum the granting of permits for importing consumer goods in a mode of payment by installments, closely control and check foreign countries� sale agents selling consumer goods, especially drinks, beer and liquors, cosmetics and other commodities the import of which should be restricted.

b/ The Ministry of Finance shall regularly coordinate with the General Department of Customs in checking and adjusting the tax rates and the prices for tax calculation to avoid State budget losses.

c/ The Ministry of Trade shall direct the market control service in checking and supervising the sale prices set by the foreign countries� sale agents (including the joint ventures with foreign countries in Vietnam) for commodities of the same type as imported commodities and make recommendations to the Ministry of Finance to regulate the relevant taxes levied on the consigned agents and importers.

Article 6.- On the import of automobiles, motorcycles and spare parts for assembling automobiles and motorcycles.

1. Complete automobiles of various types:

a/ For trucks, passenger cars and cars of other types: Basing itself on Decree No.36-CP of May 29, 1995 and the actual demand in 1996, the Ministry of Planning and Investment shall assume the main responsibility and, in consultation with the Ministry of Transport and Communications and the Ministry of Trade, identify the import demand; basing itself on this basis, the Ministry of Trade shall direct the import concretely.

b/ Cars of under 12 seats shall be imported in a quantity of about 3,000 units.

2. Complete motorcycles: 350,000 units.

3. Spare parts for assembling automobiles and motorcycles:

a/ No restriction shall be placed on the import of spare parts into Vietnam for assembling automobiles and motorcycles for export.

b/ The spare parts imported for assembling automobiles and motorcycles for domestic consumption shall be subject to the following regulations:

- No restriction shall be placed on the quantities of automobiles assembled at least in CKD2 mode (including welding and painting in Vietnam) and of motorcycles assembled in IKD mode. The Ministry of Planning and Investment must check and urge the joint ventures engaged in car and motorcycle assembly to observe the investment licenses and the approved feasibility studies.

- With regard to the motorcycles assembled by Vietnamese enterprises, the Ministry of Industry shall have to review the situation according to Decision No.5397-KTTH of September 30, 1994 of the Prime Minister and make and submit specific recommendations to the Prime Minister for decision in February 1997; if these enterprises are permitted to continue with the assembly, the quantity of imported motorcycles shall be included in the quota of complete motorcycles and shall be specified by the Ministry of Trade.

Article 7.- The import of equipment in complete set or incomplete equipment and machinery with budget capital; the import of used technologies, machinery, equipment and vehicles in service of construction; and the import of commodities on the list of commodities managed by specialized branches shall comply with current regulations of the Prime Minister and other current regulations issued by the managing Ministries and branches.

The Ministry of Trade shall have to revise the regulations and documents of the Ministries and branches related to the management of import-export activities to ensure unified management without causing difficulties to the enterprises. In case any problem occurs, the Ministry of Trade shall consult the Ministries and branches or report it to the Prime Minister for decision.

Article 8.- In order to rapidly increase export turnover, the Minister of Trade is empowered to execute, after consulting the concerned Ministries and branches, the following policies:

a/ Encouraging enterprises of all types (production or business) in all economic sectors, which have permits for direct import and export activities, to export or agree to export on trust the commodities outside the list of commodities registered in their permits, except for the commodities managed according to a separate mechanism.

b/ Setting up step by step the support fund for direct export by producers of key commodities; and voluntary support funds of members of the Union of Export Associations; diversifying the forms of commodity insurance in business and production.

c/ The Ministry of Trade shall provide guidance for formulating the rules and statutes on the establishment and operation of the Associations of Commodity Lines in order to protect the interests of producers and business people, protect the interests of enterprises of all economic sectors and to help members of the Associations to have sufficient conditions and enable them to coordinate export activities in replacement of the current franchised exporters.

Article 9.- The Ministry of Planning and Investment shall assume the main responsibility and, in consultation with the Ministry of Trade, the Ministry of Finance, the State Bank of Vietnam and the General Department of Customs, formulate the inter-branch management principles; have a firm understanding of the financial and payment capabilities of the enterprises in a number of key commodity lines and branches so as to manage well the import work according to the plan set for 1997.

Article 10.- The General Department of Customs shall assume the main responsibility and, in consultation with the Ministry of Trade, provide guidance for the import of non-quota commodities effective from March 1997.

Article 11.- The General Department of Customs shall have to supply once every ten days the data on the actually imported and exported commodities to the Ministry of Trade, the General Office of Statistics, the Ministry of Planning and Investment, the Ministry of Finance, the State Bank of Vietnam and the Office of the Government. The statistical data on import must be ratified by the General Department of Customs, the Ministry of Trade, the Ministry of Planning and Investment and the State Bank of Vietnam before they are made public by the General Department of Statistics.

Article 12.- The Minister of Trade shall have to coordinate with the concerned Ministries and branches in issuing documents to guide in time the implementation of this Decision.

Article 13.- This Decision shall be effective from January 1st, 1997 to March 31, 1998. In the course of management, the Ministry of Trade shall oversee and summarize the opinions of the Ministries, branches and localities and report them to the Prime Minister in order to adjust the commodities policy when necessary.

Article 14.- The Ministers, the Heads of the ministerial-level agencies and agencies attached to the Government, the Presidents of the People�s Committees of the provinces and the cities directly under the Central Government shall have to implement this Decision.

For the Prime Minister

Deputy Prime Minister

PHAN VAN KHAI

Appendix 1

LIST OF THE COMMODITIES BANNED FROM EXPORT AND IMPORT IN 1997
(issued together with Decision No.28-TTg of January 13, 1997 of the Prime Minister)

I. COMMODITIES BANNED FROM EXPORT

1. Weapons, ammunitions, explosives, military technical equipment

2. Antiques

3. Narcotics of all kinds

4. Toxic chemicals

5. Logs, peeled and sawn timber, charcoal made from wood or firewood, wood and forest products made from timber of IA group, planks processed from timber of IIA group on the list issued together with Decree No.18-HDBT of January 17, 1992, semi-processed wood products, material rattan.

6. Wild animals, and rare and precious animals and plants.

II. COMMODITIES BANNED FROM IMPORT

1. Weapons, ammunitions, explosives, military technical equipment; with regard to the demand for explosives in service of industrial production, the Minister of Trade shall have to handle.

2. Narcotics of all kinds

3. Toxic chemicals

4. Depraved and reactionary cultural products

5. Firecrackers of all kinds. Children�s toys harmful to ethical education, social order and safety.

6. Cigarettes (except for personal use in prescribed quantity)

7. Used consumer goods (except cars of under 12 seats, motorcycles, transferred assets including commodities in service of the personal needs of individuals with diplomatic titles of foreign countries and international organizations, and personal effects in prescribed quantity)

8. Cars and self-propelled vehicles of all kinds with right-hand drive (including spare parts).

9. Used spare parts of automobiles, motorcycles and motor tricycles

Notes:

1. The export of the commodities on the aforesaid list for security, defense and other purposes shall be permitted in writing by the Prime Minister and the procedures involved shall be completed by the Customs Service.

2. The ban on the export of animals and plants for the purpose of environmental protection shall be guided in a separate document of the Ministry of Agriculture and Rural Development and the Ministry of Science, Technology and Environment.

3. The Ministry of Trade and the General Department of Customs shall together guide the implementation of Item II.7.

4. The import of used equipment (including spare parts and components) shall comply with the guidance of the Ministry of Science, Technology and Environment.

5. The import of logs in service of domestic production is encouraged. The import of logs from Cambodia can be effected only with the consent of the Prime Minister.

Appendix 2

LIST OF COMMODITIES REGULATED BY QUOTAS IN 1997 (issued together with Decision No.28-TTg of January 13, 1997 of the Prime Minister)

EXPORTS

- Rice

Textiles and garments exported to the EU, Canada, Norway and Turkey.

Appendix 3

LIST OF IMPORT AND EXPORT COMMODITIES SUBJECT TO SPECIALIZED MANAGEMENT (issued together with Decision No. 28-TTg of January 13, 1997 of the Prime Minister)

1. List of commodity minerals for export and chemicals to be imported under guiding regulations of the Ministry of Industry.

2. List of forest plants and animals for export, drugs and materials for the production of plant protection drugs and veterinary drugs; animal feeds and materials for the production of animal feeds issued according to guiding regulations of the Ministry of Agriculture and Rural Development.

3. List of habit-forming drugs and base substances, psychotropical drugs and a number of medical equipment and instruments to be imported under guiding regulations of the Ministry of Health.

4. List of rare and precious aquatic products and living aquatic products used as breed, feeds and medicines in the raising of aquatic animals to be imported and exported under guiding regulations of the Ministry of Aquatic Products.

5. Broadcasting facilities, wireless transmitting and receiving equipment; exchange boards of various kinds to be imported under guiding regulations of the General Department of Post.

6. Cultural products and fine art works managed by the State, cinematographic works, special printing equipment, recorded video tapes to be imported and exported under guiding regulations of the Ministry of Culture and Information.

7. Equipment and machinery exclusively in service of the banking service to be exported and imported under guiding regulations of the State Bank of Vietnam.

Note:

1: The itemized lists of the aforesaid commodities shall comply with the lists issued together with Decree No.89-CP of December 15, 1995 of the Government.

Appendix 4

LIST OF COMMODITIES RELATED TO THE MAJOR BALANCES OF THE NATIONAL ECONOMY
(issued together with Decision No.28-TTg of January 13, 1997 of the Prime Minister)

1. Petrol and oil

2. Fertilizers.-